Callinex Announces Soil Sampling Results to Follow-up on Silver Discoveries at the Nash Creek Project in Bathurst Mining District, New Brunswick

Highlights:

• Seven areas have been identified from elevated silver, lead and zinc soil anomalies along the controlling Fault that's associated with the recently announced silver discoveries;
• Drill hole NC20-313 intersected 28.6m of 57 g/t silver including 16.5m of 94 g/t silver and NC19-306, located 6.8 kms to the south, intersected 19m of 36.53 g/t silver, 0.52% lead and 0.38% zinc; and
• A drilling campaign is being planned to follow up on the seven target areas identified from the soil sampling campaign.

VANCOUVER, Jan. 11, 2021 - Callinex Mines Inc. (the "Company" or "Callinex") (TSXV: CNX) (OTC: CLLXF) is pleased to announce results from the soil sampling campaign (the "Campaign") at its 100% owned Nash Creek Project (the "Project") located within the Bathurst Mining District of New Brunswick (See Figure 1).

Callinex's technical team has identified seven new target areas based on elevated, silver, lead, and zinc soil anomalies that cover over 10 km of the southern portion of the 18 km Black Point Arleau Brook Fault (the "Fault"). The Fault is spatially associated with two previously announced silver discoveries located 6.8 km apart (See Figure 2). Drill hole NC20-313 intersected 28.6m of 57 g/t silver at a vertical depth of 120m including 16.5m of 94 g/t silver and NC19-306 which intersected 19m of 36.53 g/t silver, 0.52% lead and 0.38% zinc at a starting depth of 34.0m (See News Releases dated June 15, 2020 and June 4, 2020).

Max Porterfield, President and CEO, stated, "The results from the soil sampling campaign provide an additional data set that will aid our team as we vector towards higher grade silver mineralization and expand the two silver discoveries made last year." Mr. Porterfield continued, "Meeting this objective has the potential to build upon the maiden Preliminary Economic Assessment ("PEA") that was published on the Bathurst Portfolio. It should be noted that today metal prices are all higher than the metal price assumptions envisioned in the 2018 PEA, which outlined a mine plan that generates a strong economic return with a pre-tax IRR of 34.1% and NPV8% of $230 million."

The 10 km area of interest has been subdivided into two target areas:

Target Area 313

Target Area 313 is the northern 5.0 km of the sampled area where NC20-313 was drilled. Of the potential 5.0 km of strike, 3.7 km show strong linear correlations between silver/lead soil anomalies which supports the mineralization intersected in NC20-313 (See Figure 3). Additionally, this target area is associated with a low resistivity Induced Polarization ("IP") anomaly which suggests alteration similar to what was observed in NC20-313 (See Figure 4). The elevated soil anomalies and IP resistivity low coincide with the interpreted conductive airborne Versatile Time Domain Electromagnetic (VTEM) anomalies previously identified which could suggest an increase in silver rich sulphide mineralization similar to what was intersected in hole NC20-313.

Target Area 306

This target area is the southern 5 km of the sampled area where NC19-306 was drilled. As seen in the northern area, soil results in the southern portion define four targets recommended for drilling which span 1.7 km of prospective strike. Of particular interest from the soil sampling results are highlighted by anomalous silver along the Fault (See Figure 5). The elevated silver anomalies are coincident with a much larger IP resistivity low anomaly and sits along a felsic/sediment rock contact (See Figure 6). Drill hole NC19-306 was drilled vertically and did not test the main controlling fault. It should be noted that the 2006 VTEM survey that was completed was limited to a small portion of Target Area 313 and did not cover any of Target Area 306.

The silver mineralization defined by the two discovery holes is interpreted to be hosted within faulted / brecciated rhyolites, with alteration consisting of silica, pyrite, galena +/- calcite interstitial to the felsic fragments. Mineralization associated with faulting and the extensive soil anomalies defined along the Fault highlights the potential for additional silver mineralization to be discovered along the 10km trend.

The Company has analyzed results from 2,000 soil samples submitted for analysis at a 25 metre sample spacing along section lines spaced at 100 metre intervals over the 10 km of trend that encompasses both silver discoveries (See Figure 2). Analysis consisted of a selective cyanide leach (EDTA) process with an ICP-MS finish with 54 elements analyzed. In addition to elevated silver and lead values, elevated metals including zinc, arsenic, cadmium, barium, and manganese are highlighting areas of interest which support the minerals identified in holes NC20-313 and NC19-306.

Plans are underway to initiate a drilling campaign to follow-up on the seven target areas identified from the soil sampling campaign and the reprocessing and interpretation of the VTEM geophysical survey data (See News Release Dated August 4, 2020).

J.J. O'Donnell, P.Geo, a qualified person under National Instrument 43-101 and Exploration Manager for Callinex, has reviewed and approved the technical information in this news release.

Figure 1: Bathurst Regional Overview

Figure 2: Nash Creek 2020 Soil Sampling Results Overview with Silver

Figure 3: Nash Creek Soil Sampling Results - Target Area 313 Silver with Geology

Figure 4: Nash Creek Soil Sampling Results - Target Area 313 Silver with Resistivity and VTEM

Figure 5: Nash Creek Soil Sampling Results - Target Area 306 Silver with Geology

Figure 6: Nash Creek Soil Sampling Results - Target Area 306 Silver with Resistivity

About Callinex Mines Inc.

Callinex Mines Inc. (TSXV: CNX) (OTC: CLLXF) is advancing its portfolio of base and precious metals rich deposits located in established Canadian mining jurisdictions. The portfolio is highlighted by the rapidly expanding Rainbow Discovery at its Pine Bay Project located near existing infrastructure in the Flin Flon Mining District. Additionally, Callinex has emerging near-surface silver discoveries at its Nash Creek Project located in the Bathurst Mining District of New Brunswick. A 2018 PEA on the Company's Bathurst projects outlined a mine plan that generates a strong economic return with a pre-tax IRR of 34.1% (25.2% post-tax) and NPV8% of $230 million ($128 million post-tax).

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the ability to complete the proposed drill program and the timing and amount of expenditures. Except as required under applicable securities laws, Callinex does not assume the obligation to update any forward-looking statement.

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SOURCE Callinex Mines Inc.